Straight-line Depreciation
Calculate annual straight-line depreciation from asset cost, salvage value, and useful life.
How to use
- Enter acquisition cost, salvage value, and useful-life years.
Capabilities and scope
The depreciable base cost−salvage is spread evenly across years.
How it works
annualDepreciation=(cost−salvage)/years.
Example
10,000,000 cost, 1,000,000 salvage, five years gives 1,800,000 per year.
Useful for
- Estimate a simple straight-line schedule
Before you use it
- Tax lives, partial-year rules, limits, and accounting policy vary by jurisdiction.
Frequently asked questions
Can salvage value exceed cost?
That is not a typical depreciation scenario; review the assumptions.